Third Circuit Sends Back Sprint Class Action Settlement

By Maryam K. Ansari, Esq. on July 3, 2012 12:02 PM

The entire class needs to be properly
protected for valid class certification. For starters, class representatives need to have the interests of the
whole class in mind. Proper notice to potential class members is also crucial to
a valid
class action case.

A three-judge panel of the Third Circuit Court of Appeals vacated a settlement
between Sprint and a class of its customers last week, claiming that the $17.5 million
settlement didn’t adequately protect absent class members.

A district court in New Jersey certified the class, over objections lodged by
several class members.

The objectors argued that many class members — potentially millions — were
never notified of the class action lawsuit, and that Sprint
failed to conduct a search of its records to identify potential class members.
Under Rule 23(c)(2)(B), individual notice is required for all class members who
can be identified through a reasonable effort.

There was also the question of whether the class representatives could
adequately represent all class members. Rule 23(1)(4) states that the representatives must fairly and adequately
protect the interests of the class. The objectors argued that the class
representatives were not current subscribers at the time that the class
settlement was reached.

The Third Circuit Court of Appeals didn’t address the issue of class representatives.
Nevertheless, the court stated that the case would be remanded on other grounds, and urged the district court to evaluate the issue of
class representatives as it was a significant concern.

There is no news yet on what Sprint plans to do regarding the Third Circuit
Court’s decision.

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U.S. Third Circuit features news and information from the U.S. Court of Appeals for the Third Circuit, which hears appeals from U.S. District Courts in Delaware, New Jersey, Pennsylvania and the U.S. Virgin Islands. This blog also features news that would be of interest to legal professionals practicing in the 3rd Circuit. Have a comment or tip? Write to us.